prepared january 2013 focusing on: oil exploration mineral exploration fuel for south sudan. south...

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Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan . SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration Ltd. A division of Chang & Skalbania Exploration Ltd. Naath – means "people“ from the language of the Nuer Nilotic nation in South Sudan.

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Page 1: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

Prepared January 2013

Focusing on:

• Oil Exploration

• Mineral Exploration

• Fuel for South Sudan

.

SOUTH SUDAN BUSINESS OPPORTUNITIES

Chang & Skalbania Exploration Ltd.

A division of Chang & Skalbania Exploration Ltd.

Naath – means "people“ from thelanguage of the Nuer Nilotic nation

in South Sudan.

Page 2: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Overview

Republic of South Sudan, became an independent state on 9 July 2011. It is a landlocked country located in the Sahel region of northeastern Africa. It is also part of the North Africa UN sub-region. Its current capital is Juba, which is also its largest city. South Sudan is bordered by Ethiopia to the east, Kenya to the southeast, Uganda to the south, the Democratic Republic of the Congo to the southwest, the Central African Republic to the west, and Sudan to the north.

The official language is English and Christianity is the major religion. The economy is primarilydriven by the production and exportation ofoil. Oil revenues constitute 98% of the government’s budget, according to the Ministry of Finance and Economic Planning and this has amounted to more than $8 billion in revenue since the signing of the peace agreement.

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Page 3: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Oil and Gas OverviewSouth Sudan’s oil reserve is currently estimated at 6.5 billion barrels of recoverable crude oil, placing it in the top ten countries with greatest proven petroleum reserves, above other sub-Sahara African States in the world petroleum reserves ranking. Current production is approximately 400,000 bpd.

The source rocks are the Lower Cretaceous lacustrine shales, whereas reservoirs and seals are both Palaeogene and Upper Cretaceous. Heavy to light crude oils and gas have been discovered in the Palaeogene and only light crude oils and gas in the Upper Cretaceous producing zones.

The dominant oil production is in the Melut basin in Unity State, South Sudan and is in the Palaeogene zone.

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Page 4: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Oil and Gas Market

South Sudan’s oil industry is dominated by pacific rim companies. Oil is exported via pipelines to a small refinery in Khartoum and a larger one at Port Sudan with the balance of crude exported from Port Sudan South Sudan is an importer of refined petroleum products.

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Page 5: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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OPPORTUNITY: Oil Concessions by Providing Power

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C&S has entered into negotiations to provide a number of electricity generating sets (diesel fueled) to certain cities in South Sudan.

The concept is to provide gen-sets (0.5 MW to 1.0 MW) to seven cities provided:

a) power purchase agreements with the governments are obtained

b) some oil exploration concessions could be obtained, the size of the concessions determined by the number of gen-sets that are provided.

Page 6: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Opportunity: Oil Concessions by Providing Mini-refineries

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Naath has entered into negotiations with the government to provide refinery capacity for South Sudan.

The initial program is to acquire and install two mini-refineries that would only process diesel fuel while returning the unused crude to the source. Further, the plan is to develop a larger refinery (20,000 barrels/day) to be located at the southern terminus of the existing pipeline that goes through North Sudan to a refinery on the Red Sea. The negotiations with South Sudan are that we will build refineries provided: a) sufficient crude from existing production provided for the refineries and b) Naath to have some oil concessions in BLK 7 or BLK B to develop its own crude.

Naath has retained Stefan Kmetovic, P.Eng., (Petro-Mont Technical Services Inc.) as the refinery consultant.

Page 7: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Opportunity – Mineral Concession

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The Ministry of Mines has granted Naath exclusive rights to explore/develop certain properties identified as prospective by the government. We have identified the most promising areas for initial exploration which are in the SW and SE of South Sudan.

Naath is in the process of selecting a geologist and/or firm to joint-venture and explore these mineral targets. Paul Sarjeant, P.Geo. of Toronto has been retained as Naath’s consulting geologist to supervise this program.

Page 8: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Opportunity: Fuel Distribution

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Naath is government licensed to deliver diesel/petrol/kerosene fuel to South Sudan. Fuel is sold to government agencies, the United Nations and to the private sector. To date, the fuel source is from depost/suppliers in Kenya.

Naath has now delivered several diesel tankers of 31,000 litres each, along with some kerosene.

The diesel program is to ultimately have one tanker per day delivering fuel from Kenya to South Sudan. Naath has installed its own storage tanks in Juba and is in the process of purchasing its own truck tankers. The target is to bring in 2,000,000 litres per month.

Page 9: Prepared January 2013 Focusing on: Oil Exploration Mineral Exploration Fuel for South Sudan. SOUTH SUDAN BUSINESS OPPORTUNITIES Chang & Skalbania Exploration

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Management

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Chairman Simon TutNative South Sudanese with Canadian citizenship, political /military background with oil & gas experience

President Nelson Skalbania B.Ap.Sc.,M.Sc.,P.Eng.

VP Operations Rick Rockliffe

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Stock Shares $/Share Capital

Founder/Acquisition 20,000,000

Private Placement 10,000,000 $0.20 $2,000,000

Warrants 10,000,000 $0.20 $2,000,000

Total 40,000,000 $4,000,000

The private placement to be in the form of a convertible debenture with the following terms: (Each $10,000. debenture is convertible to shares at $0.20 and on each conversion, a warrant to acquire a further share at $0.20.)

(1) Three-year term

(2) Bear interest at 6%; paid quarterly

(3) Secured pari passu by 100% of the assets and shares of C&S

(4) Converts into shares of C&S and/or new Pubco at the rate of $0.20/share. The Company, once it has secured oil exploration agreements (by arranging gensets and/or mini-refineries) will finance the installation of the gensets/mini-refineries by Joint-Venture agreements with major/junior oil companies.

Financial Plan

NAATH Resources is a wholly owned subsidiary of Chang and Skalbania Explorations Ltd, a company incorporated in the Republic of South Sudan

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Use of Proceeds: Twelve-Month Budget

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Item $ CDNFuel Purchases 650,000Marketing 200,000Office overhead in Juba (supplies, phone, etc.) 45,000Staff costs (2: Simon Tut and Rick Rockliffe) 95,000Deposit on three mining properties 20,000Exploration of mining properties 100,000Deposits on two oil concessions 80,000Consulting petroleum engineer/geologist 110,000Consulting geologists, mining engineer 90,000Office overhead in Vancouver 30,000Entertainment/travel 60,000Vehicle (4WD), gas 70,000Legal/accounting/commissions 200,000Deposits on Gensets/Mini-refineries 250,000 Total $2,000,000

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EXIT STRATEGIES

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A. GO PUBLIC STRATEGY:

CNSX, or equivalent, where Pubco acquires 100% of C&S in a tax-effective share exchange.

Proforma share structure, post acquisition of C&S and post-funding of $4,000,000: a. Existing Pubco shell with $100,000. cash 2,000,000 b. For C&S 20,000,000 c. For 2,000,000 shares 10,000,000 d. For 2,000,000 shares (warrants exercised) 10,000,000

42,000,000 sharesB. JOINT-VENTURES (OR SALES)

with oil companies and/or mining companies.

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Conclusion

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WHY INVEST?:1) Early stage investment not generally available to small investors2) First leader advantage in South Sudan which is considered a highly desired natural resource market3) Political connections provides strategic advantages which will accelerate investment advantages4) Robust return in early stage market5) Diverse portfolio of opportunities 6) Security: First charge pari passu against assets and shares of C&S

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Chang & Skalbania Exploration Ltd.

CONTACT INFORMATION:

Nelson Skalbania 604.970.5560 [email protected] Simon Tut +211.955.615086 [email protected] Sullivan 403.650.8952 [email protected]